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Adjusting EntriesKretz Corporation prepares monthl

Adjusting EntriesKretz Corporation prepares monthly financial statements and therefore adjusts its accounts at theend of every month. The following information is available for March 2008:a. Kretz Corporation takes out a 90-day, 8%, $15,000 note on March 1, 2008, with interest andprincipal to be paid at maturity.b. The asset account Office Supplies on Hand has a balance of $1,280 on March 1, 2008. DuringMarch, Kretz adds $750 to the account for purchases during the period. A count of the supplieson hand at the end of March indicates a balance of $1,370.c. The company purchased office equipment last year for $62,600. The equipment has an estimateduseful life of six years and an estimated salvage value of $5,000.d. The company’s plant operates seven days per week with a daily payroll of $950. Wage earnersare paid every Sunday. The last day of the month is Saturday, March 31.e. The company rented an idle warehouse to a neighboring business on February 1, 2008, at arate of $2,500 per month. On this date, Kretz Corporation credited Rent Collected in Advancefor six months’ rent received in advance.f. On March 1, 2008, Kretz Corporation credited a liability account, Customer Deposits, for $4,800.This sum represents an amount that a customer paid in advance and that Kretz will earn evenlyover a four-month period.g. Based on its income for the month, Kretz Corporation estimates that federal income taxes forMarch amount to $3,900.RequiredFor each of the preceding situations, prepare in general journal form the appropriate adjustingentry to be recorded on March 31, 2008.

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